Crypto Trading
Crypto trading means buying and selling cryptocurrencies (like Bitcoin, Ethereum, USDT, etc.) through online platforms (called exchanges) to make a profit from price movements.
Just like in stock or forex trading, crypto traders try to buy low and sell high (or sometimes sell first and buy later in short selling).
1. Spot Trading
• You directly buy/sell cryptocurrencies at the current market price.
• Example: Buy Bitcoin at $50,000 and sell it later at $55,000.
2. Futures Trading
• You trade contracts that represent cryptocurrencies without owning them.
• Lets you bet on prices going up or down using leverage.
3. Margin Trading
• Borrow money from an exchange to trade larger positions than your own capital.
• High risk, high reward.
4. Arbitrage Trading
• Earning profit by buying a coin on one exchange and selling it at a higher price on another exchange.
5. Algorithmic/Bot Trading
• Using automated software or bots to trade 24/7 based on strategies and signals.
How Crypto Trading Works
-
You need to open an account on a crypto exchange (like Binance, Coinbase, Bybit, or KuCoin). - Deposit money (fiat like USD/INR or stablecoins like USDT).
- Select a trading pair (e.g., BTC/USDT).
- Place an order:
- Market Order → Buy/Sell instantly at the best available price.
- Limit Order → Buy/Sell at your chosen price.
- Track your portfolio and manage risk.
Why People Trade Crypto?
- Open 24/7 (unlike stock markets).
- High volatility (more chances for profit).
- Global access.
- Low barriers to entry (can start small).